Not every insurance adjuster is acting in bad faith — but some are. Knowing the warning signs helps you protect your claim and know when to escalate to legal representation.
Red Flag 1: Unreasonable Delays
Texas Insurance Code § 542 requires insurers to acknowledge your claim within 15 days and accept or deny within 15 business days of receiving all required documentation. If your claim is languishing without explanation, that delay may itself be actionable bad faith.
Red Flag 2: The Adjuster Asks You to Sign Quickly
If you're being pressured to sign a release, proof of loss, or settlement agreement quickly — before you've had time to review or consult an attorney — stop. Once you sign a release, you generally cannot come back for additional compensation.
Red Flag 3: They Cite Exclusions Without Full Explanation
If your claim is denied based on an exclusion, the insurer must specifically identify the exclusion and how it applies to your specific loss. Vague denial letters that cite general exclusions without specific explanation are a red flag and a potential bad faith indicator.
Red Flag 4: They Don't Investigate Adequately
Insurers have an affirmative duty to conduct a reasonable investigation of your claim. An adjuster who spends 20 minutes at your property, doesn't get on the roof, or doesn't review your policy endorsements carefully may not have fulfilled this duty.